By Matt Grossman
John Williams, the president of the New York Fed, warned that newly implemented tariffs have lowered the U.S. growth outlook and raised his expectations for inflation and unemployment.
In a speech in Puerto Rico Friday, Williams said he expects:
-- Economic growth to slow to below 1%, from its 2.4% annualized pace in last year's fourth quarter.
-- Inflation of 3.5% to 4% ahead, compared with 2.5% in the latest reading from the Fed's preferred gauge.
-- Unemployment of 4.5% to 5%, up from 4.2% in March.
"Monetary policy is in the right place to manage those risks as best we can," Williams said.
The Fed has held its benchmark rate steady at 4.25% to 4.5% since December, and policymakers are scheduled to vote on their next move in early May.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
April 11, 2025 11:38 ET (15:38 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.